PDSnet Glossary

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Definition

<p style="text-align: justify;">This <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">earnings</span> figure, better known as EBIT, shows the <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">company</span>'s earnings before the cost of <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">interest</span>-bearing <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">debt</span> and taxation. It does not include the cost of <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">assets</span> (<span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">depreciation</span>) or impairments (<span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">amortisation</span>) like <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">EBITDA</span> but it still gives a good idea of the operational performance of the business. It may be more suitable for companies which do not have substantial assets such as <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">service companies</span>.</p>